Can I retire at age 40 with 985,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $985,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.3%
1 years$81,340$80,616$79,909$79,219$78,545$78,116
2 years$40,268$39,518$38,791$38,086$37,403$36,969
3 years$26,578$25,825$25,100$24,402$23,730$23,306
4 years$19,735$18,984$18,267$17,580$16,924$16,513
5 years$15,630$14,884$14,176$13,503$12,866$12,468
6 years$12,895$12,154$11,456$10,799$10,180$9,798
7 years$10,941$10,207$9,520$8,878$8,279$7,911
8 years$9,477$8,749$8,074$7,448$6,868$6,515
9 years$8,339$7,618$6,954$6,344$5,784$5,446
10 years$7,429$6,715$6,063$5,468$4,928$4,604
11 years$6,684$5,978$5,337$4,759$4,239$3,929
12 years$6,065$5,365$4,737$4,174$3,673$3,377
13 years$5,541$4,849$4,232$3,685$3,203$2,921
14 years$5,092$4,407$3,802$3,271$2,808$2,539
15 years$4,704$4,026$3,433$2,918$2,472$2,217
16 years$4,364$3,694$3,113$2,612$2,185$1,942
17 years$4,065$3,402$2,832$2,347$1,937$1,707
18 years$3,799$3,143$2,586$2,115$1,723$1,504
19 years$3,561$2,913$2,367$1,911$1,535$1,328
20 years$3,348$2,707$2,172$1,731$1,371$1,175
21 years$3,155$2,522$1,998$1,571$1,227$1,042
22 years$2,980$2,354$1,842$1,428$1,100$925
23 years$2,820$2,202$1,700$1,301$987$822
24 years$2,674$2,063$1,573$1,187$888$732
25 years$2,539$1,936$1,456$1,084$799$652
26 years$2,416$1,819$1,351$991$719$582
27 years$2,301$1,712$1,254$907$649$519
28 years$2,195$1,613$1,166$831$585$464
29 years$2,097$1,522$1,085$762$528$414
30 years$2,005$1,437$1,011$699$477$371
31 years$1,919$1,359$942$642$432$331
32 years$1,839$1,286$879$590$391$297
33 years$1,764$1,218$821$543$353$266
34 years$1,693$1,154$767$499$320$238
35 years$1,627$1,095$717$460$290$213
36 years$1,564$1,039$671$423$263$191
37 years$1,505$987$628$390$238$171
38 years$1,450$938$588$360$216$154
39 years$1,397$892$551$332$196$138
40 years$1,347$848$516$306$177$124
41 years$1,299$808$484$282$161$111
42 years$1,254$769$454$260$146$100
43 years$1,211$733$426$240$133$89
44 years$1,170$698$400$222$120$80
45 years$1,131$666$376$205$109$72
46 years$1,094$635$353$189$99$65
47 years$1,059$606$331$175$90$58
48 years$1,025$579$311$162$82$52
49 years$993$553$293$149$74$47
50 years$962$528$275$138$67$42

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $985,000, adding $2,611 every year, while hoping to spend $37,419 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 44/28/28 Blend
39$985,000$985,000$985,000$985,000
40$1,088,163$1,035,958$1,020,691$1,127,095
41$1,159,342$1,046,907$1,015,070$1,166,087
42$1,236,528$1,057,137$1,008,008$1,204,559
43$1,320,292$1,066,576$999,415$1,245,548
44$1,411,266$1,075,142$989,199$1,289,311
45$1,510,143$1,082,752$977,265$1,336,129
46$1,617,686$1,089,315$963,512$1,386,319
47$1,734,734$1,094,735$947,833$1,440,227
48$1,862,210$1,098,911$930,119$1,498,241
49$2,001,130$1,101,732$910,252$1,560,786
50$2,152,613$1,103,084$888,113$1,628,337
51$2,317,889$1,102,845$863,575$1,701,418
52$2,498,313$1,100,884$836,504$1,780,608
53$2,695,376$1,097,063$806,762$1,866,551
54$2,910,721$1,091,235$774,205$1,959,958
55$3,146,153$1,083,244$738,680$2,061,614
56$3,403,664$1,072,926$700,028$2,172,392
57$3,685,443$1,060,105$658,085$2,293,254
58$3,993,904$1,044,597$612,677$2,425,265
59$4,331,704$1,026,203$563,623$2,569,604
60$4,701,767$1,004,716$510,734$2,727,573
61$5,107,316$979,916$453,812$2,900,613
62$5,551,899$951,569$392,652$3,090,316
63$6,039,424$919,427$327,037$3,298,443
64$6,574,195$883,229$256,742$3,526,937
65$7,160,954$842,698$181,534$3,777,950
66$7,804,922$797,541$101,166$4,053,857
67$8,511,852$747,448$15,383$4,357,280
68$9,288,079$692,092$0$4,691,121
69$10,140,584$631,125$0$5,081,335
70$11,077,057$564,183$0$5,515,087
71$12,105,966$490,878$0$5,991,771
72$13,236,644$410,800$0$6,515,790
73$14,479,372$323,519$0$7,092,001
74$15,845,474$228,578$0$7,725,762
75$17,347,429$125,494$0$8,422,979
76$18,998,983$13,760$0$9,190,169
77$20,815,282$0$0$10,034,516
78$22,813,013$0$0$10,996,964
79$25,010,562$0$0$12,060,476
80$27,428,186$0$0$13,230,634
81$30,088,203$0$0$14,518,258
82$33,015,206$0$0$15,935,269
83$36,236,291$0$0$17,494,805
84$39,781,312$0$0$19,211,338
85$43,683,167$0$0$21,100,818
86$47,978,101$0$0$23,180,817
87$52,706,056$0$0$25,470,699
88$57,911,039$0$0$27,991,801
89$63,641,542$0$0$30,767,632
90$69,951,000$0$0$33,824,099
91$76,898,290$0$0$37,189,749
92$84,548,290$0$0$40,896,035
93$92,972,492$0$0$44,977,620
94$102,249,670$0$0$49,472,697
95$112,466,632$0$0$54,423,355
96$123,719,029$0$0$59,875,969
97$136,112,267$0$0$65,881,645
98$149,762,492$0$0$72,496,698
99$164,797,693$0$0$79,783,182
100$181,358,908$0$0$87,809,480